Facebook Files IPO Details
The social-network behemoth should raise $6 billion and sell shares for about $35 per share beginning this month, with founder Mark Zuckerberg cashing in hundreds of millions of dollars worth of stock to pay his taxes.
Facebook intends to sell 180 million shares -- with early investors selling an additional 157 million -- in its initial public offering this month at a price of $28-$35 per share, according to documents filed with the U.S. Securities and Exchange Commission on Wednesday.
Facebook is expected to begin trading on May 18, the Wall Street Journal reported.
The IPO could raise more than $6 billion for the giant social-networking company founded by Mark Zuckerberg and give it an overall value in the neighborhood of $75 billion, just shy of what the Walt Disney Co. is worth.
Some analysts, though, are speculating that the shares will actually price north of $40 apiece when all is said and done, which could give Facebook a valuation of $100 billion, which is about the combined value of CBS, Viacom and News Corp.
Zuckerberg intends on selling 30 million shares with a "substantial majority" of the proceeds being used to pay taxes. Other insiders selling shares include investors Peter Thiel and James Breyer, as well as Microsoft, Accel Partners, DST Global Limited, Elevation Partners and Greylock Partners. Zynga CEO Mark Pincus and LinkedIn chairman Reid Hoffman are also listed among the insiders who will sell shares.
Facebook, which earned $205 million on $1.1 billion in revenue during the first quarter, will trade on Nasdaq under the ticker symbol "FB."